MARKET. In order to provide near real time data, Reliant chose Tendril s In Home Display.

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1 MARKET Q: Have you seen success of this product with low income groups? A: Yes, It fit the segment very well since there was no prerequisite for broadband Internet for its use. Q: Utility pilots on IHDs indicate that only a small fraction of the customer population is interested and even fewer respond. There are also utility studies showing that customers respond more to 'next day' Green Button type data than 'near real time' IHD data. So why the focus on near real time IHDs? A: Consumer research indicated that near real time data was important for consumer engagement in order to see immediate impact on devices that matter in the home such as dryers and air conditioners when they happen especially as it applies to Time of Use rates. Tendril also supports the Green Button initiative. Green Button is in the early stages of adoption with implementation by approximately 7 utilities with another 22 committed that represents services for approximately 27 states in the US. This is yet another option for consumers to have data access in the future. Q: What segment of the utility market is really interested in the cost of electricity, as opposed to the simplicity of receiving reliable energy? A: Tendril s own proprietary, energy related profiling data has detailed behaviors, preferences and the propensity to participate in an energy program. From a segmentation perspective, we have found that 66% of consumers are incented by the cost of electricity, saving money or being green whereas 34% of consumers simply want to receive reliable energy. Q: Was the decision to delay the data outside the home by 48 hours, and make the real time consumption data available in house, part of the marketing strategy for the in home energy monitor? A: The 48 hour data delay was not a decision; it is a limitation of the Smart Meter Texas and most AMI meter installation programs. In order to provide near real time data, Reliant chose Tendril s In Home Display. How does customer engagement translate into sales for utilities? Because Reliant is an energy retailer, providing customer engagement and solutions supports the acquisition and retention strategies. For regulated utilities, customer engagement builds a trusted advisor relationship, enabling utilities to sell products and services such as warranties, HVAC filter replacement services, smart appliances offers as well as additional energy management services including home energy audits, increased compact fluorescent light bulb use and exchanges for old, inefficient refrigerator. Q: Is Tendril aware of any utility this is using the HEM within a DR program without direct control but as a behavior change only notification? A: The HEM is normally used as either a consumer engagement tool about their own use or as a communication device for participation in DR programs. It can be used for behavior change but currently provides good results as part of a consumer engagement or demand response program. Q. What s is an ecosystem provider? A: An ecosystem provider are manufacturers of devices that matter for energy use in the home. These might include: solar panels, electric vehicles, smart appliances, HVAC, heat and pool pumps. Q: I would like to hear comments on how long an engaged customer will use an IHD before they know what to do. A: You can hear consumer comments on the Reliant YouTube channel. Specifically, Reliant e Sense Home Energy Monitor. Q: How do energy service providers balance the contrarian goals of additional revenue and business growth with a customer mandate of reducing electricity consumption, which will inversely impact their business goals? A: In some cases, utilities get rate recovery for energy savings achieved through these programs. For energy retailers such as Reliant, it is deemed that a greater long term benefit the calculated lifetime value of the customer supports the offer of tools for insight and control of energy. This investment is made even if it means a potential shorter term revenue reduction resulting from energy savings for that particular customer.

2 MARKET continued Q: Why hasn t anyone been able to break through to homeowners in monitoring all 3 utilities Electric, Gas, Water? A: People and companies have tried. The industry challenges are highlighted by a lack of standards for information access across those three fuel types. And, the challenges of keeping it super simple for consumers to understand the differences in energy consumption and the data they can control. For example, water meters use the same AMR technology as electric meters, but use a battery instead of electric current to power the meter. So the warranty lifetime, say 10 years, can be significantly affected by reading the meters more often than was originally intended. This shortens the battery life which results in more service calls for utilities and their vendors. Bringing together an experience that is compelling but simple to consumers has to be achieved, yet continues to be a challenge for the industry. Q: Does an IHD work in a non competitive market if you are using it to acquire customers? A: In truly regulated, non competitive markets, vertically integrated customers do not need to acquire consumers. Q: Does Reliant have any information on why their customers prefer the one way, in home display vs. the next day, Green Button device? A: As presented, Reliant s market research showed consumer preference and value from real time data in addition to next day data. In the case of Smart Meter Texas, Reliant is already able to get next day data over the AMI network so they do not need to use yet another export mechanism such as Green Button data. Q: Do you think individual appliance level cost/consumption data would help consumers engage with energy? A: Yes, we know that individual level devices that matter such as appliance level cost and consumption data will help consumers engage with their energy use. Q: How will social media impact the IHD industry? A: Social media is an online community and communication tool that enables consumers to share thoughts and information with one another. The IHD is a tool that enables individual consumers to receive information regarding the use of energy in their own home. The IHD is personal information source and as such, would benefit from the social media with consumers who want to share their own resulting benefits from consumer energy engagement programs such as the in home display. PRODUCT Q: What is the cost of IHD? Does the investment pay off through savings? What is the ROI? A: Hardware device costs vary by volume. Please contact Tendril for details. The return on investment (ROI) is part of Reliant s overall customer lifecycle cost and is not publicly disclosed. Q: How do you maintain the HEM link to the meter when you upgrade meter/system firmware? A: The relevant network information is sorted in non volatile memory so the device can continue to work on the network it is on even after an upgrade. Has Reliant evaluated other IHDs? What lead them to partner with Tendril? A: Reliant did evaluate other IHD manufacturers. They partnered with Tendril as their solution as the most complete and robust. As well as Tendril s commitment to working with Reliant to deliver a Home Energy Monitor that met the demands of their consumers as well as infrastructure for diagnostics and support. Q: Please explain "no fat fingering of the data". A: Fat fingering of data is when consumers have to type in their own information and make typographical errors as a result. Q: Were there communication range issues with Zigbee during install? A: Not for single family homes. Q: What are the electricity reductions, which can be seen using these IHD's? And do these support dynamic or pre pay pricing? A: The device does support dynamic pricing, but it does not support pre pay pricing at this time. Q: What was the most significant reason for making the HEM work without an Internet connection? A: Added complexity and added cost.

3 PRODUCT continued Q: Are price signals sent to the Energy Monitor? A: Not in this project. Q: Did you look at any IHDs for customers with AMR meters? If so, which ones and if not, why not? A: There are only AMI meters in the Texas Smart meter network. Q: Can the device handle Tiered Rates? A: Yes. Q: Are the devices connected to Wi Fi for firmware updates? A: No. Q: When you said "communication every 10 seconds" do you mean communication with a smart meter? And what kind of information are you transferring between the two devices? A: Yes, communication Every 10 seconds there is a Zigbee smart meter instantaneous demand reading, every 15 minutes there is a Zigbee smart meter current summation delivered. Q: Since this is a plug and play unit, no CT equipment to install at the circuit breaker, do you get 10 second consumption data by getting the data from the smart meter then? A: Yes. Q: What is the storage capability of the HEM (how many days of meter data) and can the data on it be loaded onto a PC or online account? A: The HEM has the capacity to store 15 minute data for a full one month of data that is displayed. No, there is no connection except for the meter. Q: Does the HEM interact with only certain Smart Meters? A: The HEM works with all Zigbee enabled SEP 1.x enabled meters. Q: To help disaggregate, can the customer enter information into the HEM as to what device was on at a particular time? A: No. Q: Does the HEM integrate with any smart appliances or thermostats? A: Not in this program. It is designed to co exist with Zigbee SEP 1.x smart appliances or thermostats. Q: Is this product available for purchase outside of Texas? A: Yes, It is available through Tendril. Q: Is there a way to purchase this product through distribution at this time? A: It is available through Tendril at this time. Q: Does your system have any control functionality beyond just real time monitoring? A: Yes, Tendril provides full home control and demand response load control solutions incorporating Thermostats, Load Control Switches (LCSs) and Smart Plugs with additional integration to third party appliances manufacturers, electric vehicles, solar panels and other devices in the home energy management ecosystem. Q: If the HAN is not Internet connected, does all usage information come from the AMI meter? A: If the HAN is not Internet connected, the usage data comes from the AMI meter or from smart plugs within the home. The Reliant IHD deployment was designed to present consumption information from the meter. Tendril supports a number of hybrid communication configurations with and without AMI meter connectivity and / or broadband connectivity.

4 PRODUCT continued Q: Do you see a trend of IHDs/HAN skipping the smart meter deployment wave by working with devices that pull consumption information through retrofitted devices at the home socket level? A: Smart plugs in the home will never achieve the presentation of true whole home consumption. We see smart plugs as augmenting the whole home consumption profile that is available from AMI, AMR meters and direct utility enterprise integration through meter data management solutions (MDMs). Smart plugs augment the data by providing specific device load information to further enhance the information to consumers. Q: Is the HEM a portable device, movable within the home or fixed location device? A: YES, The device is moveable within the home. Q: Thank you for a nice presentation. What is the business model for developers on the Connect platform as you are giving the device free to the homes? A: Tendril s application developer program is available through open access to the published APIs in the Tendril Connect platform. Any developer can develop applications on this platform including utilities, ecosystem partners, third parties, etc. Today, deployment of these applications are licensed and deployed in concert with a defined program. Multiple business models exist to license our technology from a per user and per household fee to an API based transactional pricing. Contact Tendril for details. Q: Also TVs might cannibalize these products as more television service providers enter this market. A: There will be a segment of consumers who want to interact with energy information and control through web TVs. Tendril spearheaded an early proof of concept for TV applications with Intel and Yahoo!. At Tendril, we expect to support TVs as another consumer touch point as the market demands. Q: Is the IHD compatible with all smart meters? A: IHD is compatible with Zigbee SEP Version 1.x. Smart meters that conform to that standard are compatible which is most smart meters. Q: What is the frequency of the device dropping connection with the meter? Also, any data on the number of devices still connected over time (device heartbeat)? A: After the field trial period, the only instances of the connection are defects and there are no known defects at this time. Q: how do you handle the move from SEP 1.0 to 2.0 and what impacts do you see for the meter/gateway and DR/IHD units A: There are no current plans to move the meters from SEP 1.0 to SEP 2.0 so they will remain Q: Do Tendril devices currently have features that allow the customer to provide feedback at the push of a button on the IHD device itself? It seems like an opportunity to not just pump out info at 15 min interval, but also have the customer provide valuable feedback beyond just behavioral. Perhaps questions designed to be displayed based on particular usage or behavioral change exhibited as a result of info from IHDs. A: The device is not connected to a network, so there is nothing to push back to the meter so this does not work today. Q: Has the IHD the capability to handle multiple time of use tariffs, or is it confined to single rate tariff? A: It can handle multiple time of use tariffs via pricing from the meter, but when it is manually entered, it can only handle one. Q: How is security of data as it is transferred between meter and IHD being addressed? A: Security is handled via the Zigbee smart energy profile for security. That uses a certificate based key exchange with the ECC algorithm. Q: What percentage of installations have failed due to a range/comms problem? A: At this point, very few if any installations failed due to range or communication problems. In fact we have seen less than 2% customer returns with very few of the returns having issues that we have been able to duplicate Q: What other IHD devices did Reliant test before going with the Tendril device? A: Many other IHD devices were tested by Reliant before selecting the Tendril IHD.

5 PRICE / COST Is there a way to purchase this product through distribution at this time? Tendril has a number of utility industry partners who are licensed to resell our technology. We currently do not sell this product through direct retail channels. Q: Is this product available for purchase outside of Texas? A: Yes Q: Curious on thoughts of IHDs versus Smartphone Apps A: This was addressed in the Q&A at the end of the presentation but simply put different user segments will want to access information through different channels. Not everyone is a Smartphone user. But Smartphone apps will play an important role as a consumer touch point going forward. Q: What is the first and ongoing cost of the energy monitor? A: To the consumer, this solution was free, for the actual device cost; it depends on the quantity ordered and the features desired. Q: How do you quantify the energy savings? A: We quantify the energy savings in US Dollars saved. Energy savings are also quantified in kilowatt hours. Q: Is the Home Energy Monitor free for every customer? A: For the Reliant program to date, the Home Energy Monitors are free for the customers who receive the program offer. RESULTS / OUTCOMES Q: Want to make sure I heard right. Usually customers spend 6 8 min/year understanding energy use or cost, and Reliant is seeing 20 30x? A: Today, US consumers spend about 6 to 8 minutes per year reviewing their energy bills. By providing the Home Energy Monitor, Reliant has found that its consumers are spending 10 to 24 minutes per month looking at their energy use in real time to review current usage as well as understanding their prospective billing results. Q: Of the number of people offered the device how many accept? A: The offer was presented to all of our customers via the e Sense Account Management portal and 10k have been shipped over the last 18 months. Q: Has there been a change in customer behavior to more off peak power use since the home energy monitors have been installed? A: No study has been completed, though the customer is not incented price wise to do so unless they are also on a TOU rate plan. Q: Has there been any customer feedback on receiving one e mail per week on energy usage? Is this too frequent? A: We have received a lot of positive feedback on the Weekly Summary and customers have not mentioned weekly as being too frequent. Q: Has weekly generated customer calls? Has the number of calls generated by those s changed over time? A: I don t have exact numbers on customer calls associated with the , but yes it has created calls and we appreciate the chance to engage with the customer before they experience bill shock. Overall, we see that the s have reduced calls since the customer feels more informed at all times rather than a once a month report card of sorts in the form of a bill. Q: Has there been any data showing the levels of behavior changes and responsiveness to the presence of the Home Energy Monitor according to the different levels of economic class of each end user? A: No, but will be studied. Q: Do you have visibility into the use of the devices over time? A: No, given the devices are not actively managed.

6 RESULTS / OUTCOMES continued Q: Do you have any customer satisfaction tracking that you have initiated since installation of the IHDs? If yes, what have the results looked like? A: No, but planned. Q: Do you have any data on persistence of use? A: No, this is a subjective measure that will be derived from future surveys. No systematic measure of use is available since this device was not remotely actively managed. Q: How do you measure exact savings related to the IHD? A: We have not completed the savings measurements yet for our IHD customers. The plans are to perform year over year measures using best practice M&V procedures. Q: What are the installation rates/set up rates for customers who asked for it themselves versus those who were given this as an incentive by Reliant? A: We prefer not to give exact values, but incentive pairing rates were lower. Do you have an estimation of the savings in kwh the display has permitted? A: It is in our plans to perform a year over year energy cost savings calculation, but it is still too early in the device lifecycle to perform the calculation. RELIANT SOLUTION Q: Pre provisioned devices seem like a logistical issue. Is that an automated process? A: Yes, pre provisioning devices is an automated process. Q: Does Reliant program the devices and then send them to the customer? Or does Tendril handle that? A: Tendril programs the devices; Reliant provisions and sends the devices to the end customer. Q: Given that customers input pricing information themselves, do you have the ability to implement time of use pricing and demand response through this program? How would that work? A: The IHD does support tiered pricing, rate programs such as time of use (TOU) pricing and Demand Response if it is available from the meter. It also displays off peak, on peak and critical peak pricing. Reliant s decision was to not implement pricing at the meter to simplify the program and reduce overall program support costs. Q: What happens if you move homes, is the monitor transferable to another Reliant meter? Or is this excluded by your preprovision? A: If a consumer moves, they can transfer the monitor to the new home, if it remains in the Reliant service area and they call technical support to provision this device at their new home. Q: Who owns the Energy Monitors, Reliant or the consumer? How are they maintained over time? A: The customer owns the IHD with a one year manufacturer warranty provided with the device. Q: Does your system have any control functionality beyond just real time monitoring? A: No control capability is provided with the IHD. Q: For the estimated month end bill, what assumptions are made for remaining usage? A: The IHD doesn t provide an estimated monthly usage cost. We do provide that capability in our Weekly Summary and Online Portal. The billing period cost estimate is based on a usage forecast that is run through the CIS billing engine on a daily basis. Q: How did Reliant choose where to install monitors? Customer volunteers or screening for specific energy use patterns? Was it difficult to get households to participate? A: The IHD program was on a first come first served self selection basis.

7 RELIANT SOLUTION continued Q: What is the load on your call center to support the device? Average # of contacts per deployed device? A: I don t have the exact number of calls to report, but the call rate was very low with most calls related to issues with the installation of the IHD. Q: What customer education efforts accompanied the pilot? A: As part of the product, the customer was lead through the installation and usage directions by an included Quick Start Guide as well as a web site that offers answers to FAQs and HEM usage video. Q: Cost Saving seems to have the dual effect of reducing energy consumption (and increasing efficiency) and also increasing sales of additional utility services, where is Reliant moving in terms of further and future services to be offered through the home energy monitor? A: We see HAN devices as just one aspect of a broad product suite to provide customers with actionable insights, a choice of smart meter enabled products, and solutions that give customers control and convenience in their electricity use. Q: Given the demand reading, is Reliant using this as a demand response device as well? A: Reliant is not using the IHD as a demand response device at this time. It can and has been used to notify consumers of a DR event. Q: Are customers paying for the home energy monitor, or do they get it included in the rate? A: Customers are currently not paying for the home energy monitor and is included with their power contract from Reliant. Q: How large was the pilot? A: The pilot was for 50 devices. Q: Where do they put the IHD? Near the door, thermostat, or on the kitchen table? A: They can put it anywhere. It is recommended to put it in a high traffic area such as the kitchen counter. What is making this application successful for consumers? A: Immediate feedback on their energy use. Q: Are you sending the electricity price information over broadband or through the TDSP AMI network? A: Through the TDSP AMI network. Q. What is the retention rate for customers involved in multi year demonstrations? A: While we can t discuss specific retention rate improvements, we can say that the IHD program in conjunction with the other offerings in the Reliant e Sense suite did provide a retention improvement. Q: Do single family homes in this program include townhomes? A: Yes, if the meter is close to the house and the townhome has its own meter. Q: Does reliant have a mobile digital application so you can access your home monitor usage on your phone when you re not at home? A: Reliant announced just such a service on November 14 th. Our e Sense Now service allows a customer to access their real time usage and cost data via their smart phone. Q: Why is the smart home device necessary couldn t you just integrate the device as a mobile application, and enable the technology to be activated, once the user has paid for the download of the smart home energy monitor application? A: Reliant is an energy retailer. As such, it does not own the meters or infrastructure of electricity delivery. So, to achieve near realtime smart home energy data, the solution either requires the ability to read data from smart meters that use the Zigbee communication protocol or use a gateway device to deliver data and control over broadband communication. Q: Did Reliant initiate a customer loyalty program to educate customers about consumption prior to smart meter deployment? A: Reliant is an energy retailer in the state of Texas. Texas is a unique state in that it implemented a deregulated energy market. As such, the Texas smart meters were specified and deployed by the electric transmission and distribution utilities in Texas. Smart Meter Texas, a portal application where all smart meter data is aggregated, educated customers about the benefits of the smart metering initiative in Texas. Reliant uses consumption data to differentiate their retail energy offers to potential customers.

8 RELIANT SOLUTION continued Q: The ten thousand sales what have been the most effective sales / communications channels? A: Reliant offered the Home Energy Monitor to qualified consumers who were interested in monitoring their energy usage. Because it was used as a retention and acquisition tool, it was not sold and was offered on a request or qualified consumer basis through its website. Q: Was the smart meter deployment and the home energy monitor sales a two stage strategy? A: Yes, because Reliant is a retail energy provider, they were able to leverage the Smart Meter deployment by the Texas transmission and distribution service providers in order to offer the home energy monitor. Q: Did Reliant have to cost justify this project and if so, did energy savings quantification play a role? And if ES was quantified, how was that accomplished? A: Reliant s business model was based on consumer acquisition and retention over energy savings because it is a competitive retail energy provider. Reliant is deregulated and as such doesn t qualify for energy savings cost recovery through tariffs. Q: How often are customers accessing the portal? A: This webinar was a discussion of the consumers who are using the Home Energy Monitor. Q: How do you cover the cost of the Insight IHD product if it is free to customer? A: In the case of Reliant, it was cost justified as an acquisition and retention tool for new and existing customers and it was a differentiating offer as part of the comprehensive suite of Reliant products and services. Q: How do you cover the cost of the Insight IHD product if it is free to customer? A: In the case of Reliant, it was cost justified as an acquisition and retention of new or existing customers and it was a differentiating offer as part of the Reliant services. Q: If the HAN is not Internet connected, does all usage information come from the AMI? A: Yes. Q: Is the Energy Monitor mounted on the wall? If not, what experiences did you have with connectivity between the Energy Monitor and the meter? A: No it is not mounted on the wall. For a single family home, there are very rarely issues with connectivity between the HEM and the meter. Q: Might be premature, but how do you plan to move from 10,000 installations now to 4,000,000 or more units? A: True, as market acceptance and demand increases, device cost and availability will likely increase to meet that demand. If there is a business case and demand, we will likely be there with an offering. Q: How much does the in home display cost? What is the payback period for customers? A: Answered above Q: Can you share Reliant's ultimate goal for total deployment of the HEM? A: Reliant continues to study the market for in home devices and will continue to participate to meet customer demand. Q: Does Reliant offer this product as part of an energy contract? If so, what is the term? Is there an early termination fee? A: Reliant offers the HEM to its customers free of charge. It is not tied to a term contract, and there is no cancellation fee. Does Reliant have any plans to offer pre pay services via their IHD platform? A: Currently we don t offer pre pay capabilities incorporated into our IHD. Q: Does your weekly information give details on the use of electricity (lighting, heating, HVAC, pool)? A: Our Weekly Summary doesn t include usage disaggregation information, though we do offer that information in the customers Online Account Management portal.